🧵Route Mobile - Routing Messages to your Mobile📶

Just a brief thread on what Route Mobile does & what the future holds for it?

Scroll down👇 Image
📲Route Mobile Ltd (RM) provides cloud-communication platform as a service (CPaaS) to enterprises, over-the-top (OTT) players & mobile network operators (MNOs).


👉So what they basically do is that they act as an intermediary between enterprise & their customers.
Further Simplifying it ➡️ The msgs which u receive on ur phone for banks transactions,OTP,Order confirmation from e-comm etc. are all routed through CPaaS Software known as API’s.

➡️Their Api’s are integrated with the enterprises whch they serve and they get revenue per sms sent
👉So this was about A2P msging (text msgs) whch u receive normally.

👉But as digitization is picking up, therefore means of communication r also evolving.

📞 Nowadays co’s interact with their customers through IVR,Whatsapp,Viber , Rich Communication Services (RCS)etc.
👉RM also specializes in providing communication through these OTT apps

👉The A2P buss contributes majority of rev. but its a commoditized buss. & hv lower margins.

👉Whereas these new means of communication like whatsapp,viber etc. hv higher margins.
How services r provided❓

Wat they do is that they provide their system to d customers as per the demand.

👉E.g. If a co. want to contact customers through SMS+ whatsapp ,then RM will integrate their API into the systems of the co. which will enable them to contact customers
👉Further, they also offer SMS analytics, firewall, filtering and monetization, SMS hubbing and Instant Virtual Number (IVN) solutions to MNOs(Mobile Network Operators) across the globe..

👉These services also hv higher margins as compared to A2p
Industry Growth Rate❓
TAM - $7bn, in 2020
👍 Expected to grow 30% cagr till 2025 (Est. $26bn)

👉Its clients include some of the world’s largest and well-known organisations, including a no. of Fortune Global 500 companies.
👉Some marquee names like SAMSUNG ,FACEBOOK & GOOGLE are their customers providing strong client reference-ability.

👉Their focus is not to get as many customers as they can but to get Quality Customers who can help in inc. the margins.
👉Their buss. model is such that there is stickiness among customers once they r acquired.

👉For FY21 net revenue retention stands at 140%.
Which means they not only retained their top 50 customers but also inc. share out of them. Image
👉Their client concentration is skewed as top 10 customers contribute 59% of the revenues.

👉Therefore any loss of customer could impact the rev. in a major way. Image
Lets hv a look on some of the Acquisitions
- 365squared Ltd which operates in SMS analytics, firewall, filtering and monetization
-Call2Connect -a company which offers voice, non-voice and consulting BPO services to some of the largest enterprises in India
-Phonon for CXPaas Image
👉The latest acquisition done by them is JOHN OWEN,
who has been appointed as CEO of US & Europe regions.

This is where things become very interesting.WHY❓
👉John Owen has a spectacular track record and his previous employment at Mastek Ltd. really turned fortunes of that co.
So wat is the revenue model❓
👉RM has a no. of clients on a pre-paid business model where the client pays upfront allowing it to reduce the overall working capital cycle.
👉In addition to a security deposit or a credit line paid in advance by RM,it is typically required .....
👉..to pay MNOs within a specified period, usually ranging between 60 and 80 days.

👉It enjoys negative working capital as DSO stands at 55days and DPO stands at 80 days .
👉Further, revenue is directly linked to usage based on each transaction(i.e. per minute of voice/video conversation, per SMS message, per authentication, etc.)
👉 It is based on a pricing model where it has an ability to change the prices offered based on prevailing market...
..rates or owing to increase in rates by MNOs as a result of regulatory action.

So, any price hike can easily be passed on.

They hv not required any capital infusion in the Company since Fiscal 2007 & has grown its operations primarily through internal accruals & debt.

- They can serve more customers & handle heavy volumes easily & for that they do not need any incremental Investments.

-the adv. they hv over their competitors is being a low cost service provider

👉An accelerated shift to newer channels of communication

👉Route Mobile’s pricing vis-à-vis competition can come under pressure, as larger global players (Twilio, Sinch) consolidate their business operations.

👉Top 5 clients contribute 45% of the revenues.
Coming to the most imp part

The Future :
👉Target is to close those OTT players which are there in the market but are not their customers, by giving them direct connectivity LOW Latency and better cost.

👉New buss. line to contribute 30-40% of revenues from current 2.6% ONLY

👉With new technologies like rcs , watsapp ,voice their margins will eventually go up.


• • •

Missing some Tweet in this thread? You can try to force a refresh

Keep Current with Aditya Mehta

Aditya Mehta Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!


Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @aditya942000

26 Jun
How Ethanol Policy changed the fortunes of GLOBUS SPIRITS❓

👉So, Globus spirits is one of the largest grain based distillers in India.
👉They sell country liquor in the markets of Rajasthan ,Haryana,West Bengal and Delhi.
Have 30% mkt share in Rajasthan in IMIL segment.
👉They enjoy around 30%+ Ebitda margins in IMIL segment (earlier they were 20%+)
👉So, the co. decided to enter Bihar market and set up a distillery there.

👉And when all the capex was completed,they faced a huge setback from the state govt.
👉After Nitish Kumar was sworn in as C.M., he declared Bihar a Dry state,as a result of which their plant was shut down.

👉After all the legal struggles and battle they received an order from High Court in oct 2019 whch allowed them to operate d plant in order to produce ENA.
Read 15 tweets
11 Jan

A small thread on how Co. hv changed over last few years🧵

👉With new & young mgt. they r aggressive in capturing market share


results r already visible.

@pd_log @mmvRavindra @SwarnashishC @AnishA_Moonka

👉Online sales contribute 20%+ of total Rev.

👉Co's products r bestsellers on FLIPKART

👉If u search for mixer grinder than on the very 1st glimpse you will notice 'BESTSELLER' bagde on Butterfly Rapid Mixer grinder Image
👉Same is the result with many other products like GAS STOVES & ELECTRIC KETTLES ETC.

👉Their Rapid Mixer grinder is among the lowest priced but Good quality products.

👉Their direct competitor PRITHI costs double than that of BUTTERFLY'S PRODUCTS ImageImage
Read 19 tweets
11 Sep 20

FOIL is in d oleo chem based additives buss with majority of additives sales coming from food (30%) & plastic(40%) segm. together contributing 70% to d overall revenues & rest being contri. by additives like paints, rubber, cosmetics etc.
Founded in 1970, by Mr. Ramesh Shah, a Mumbai-based businessman wid experience in chem. trading and Mr. Prakash Kamat, a skilled technocrat from Institution of Chemical Technology.

Promoter hold 75% stake & only 3.48% (10.65 lacs shares) r available for Retail shareholders.
Co. claims to be d largest organised player of Oleo-chem based green additives in India.
-Amng top 6 global players in the specialty food emulsifiers
-1 of d 5 global players in d polymer additives industry
-dey also claim to develop proprietary tech. to mfg green additives.
Read 23 tweets
15 Aug 20
Adi-Finechem #FAIRCHEM

-Adi Finechem Ltd. Founded in 1985 by Shri R.Harivallabhdas and Shri Nahoosh J Jariwala.

-It is engaged in mfg of Oleochemicals & Neutraceuticals.

-They operate through only one plant in SANAND,AHMEDAAHMEDABAD,GUJARAT.
- With the capacity of 72K MT inc. from 45K MT up 60% from 2016.

-The plant has one of the largest processing capacities for natural soft oil-based fatty acids in India.

-Their main products are
i) OLEOCHEMS-dimer, monomer, linoleic acid etc.
ii)Neutraceuticals - (Natural) Mixed Tocopherol and Sterol Concentrate

They r further undergoing expansion:
-Neutraceuticals - to manufacture sterols and higher concentration tocopherols.
-to manufacture bio-diesel using three by-products of its manufacturing process:
Read 21 tweets
30 Jul 20
LAURAS LABS Q1FY21: Marvellous no's
-Operating Leverage comes into play
-Margins aided by Backward Integration👍
-Finance cost ⬇️
-PAT 11x🚀
-Rev. +77%
- Ebitda Marg.- 29.29% vs 15%
-Pat Marg. 17.63% vs 2.74%

Co. has successfully derisked its business from mainly an ARV API co. to diff segments.
-Has been star performer. Reaping rewards of past inv.
-Good predictability of buss. bcoz healthy order book in both Tender & non-tender seg.
-As per mgt they r at full capacity utilization lets see how much more incremental sales it can generate in FDF.
Read 5 tweets
29 Jul 20
-A HYDERABAD based pharma co. having presence in 4 VERTICALS - API’S, GENERIC–FDF(fixed dosage formulations), Synthesis and Ingredients.
- founded by Dr. Satyanarayana Chava (CEO) around 2007
- R&D spend 5.7% of Rev.
-750+ scientists and 50+ PHDs
-Carries out its operations through 6 plants – all USFDA approved except UNIT-5 (CDMO) which is a dedicated Hormone and Steroid facility for ASPEN PHARMA.
- Total capacity 3615 KL, 751 reactors and 5 billion tablet capacity
-65% is export revenue and 35% is domestic revenue REVENUE BREAKUP In Rs.Mn
- UNIT1 & 3 contibutes 80% of topline.
- Unit-2 is sole US formulations facility wid capacity of 5 bn tabs/capsules per yr also undergoing expansion which will be operational by Sept’20.
-Unit-6 is for captive API consumption
Read 24 tweets

Did Thread Reader help you today?

Support us! We are indie developers!

This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!

Follow Us on Twitter!